Stocks Continue Sideways Trade

“Opportunities – the good ones – are messy, confusing and hard to recognize. They're risky. They challenge you.” ~ Susan Wojcicki, CEO of Youtube (2014-2023)

Good evening:

Believe it or not, the S&P 500 has officially been in a bear market -- down more than 20% from its high -- for more than 230 days. It’s the longest such stretch since 1973, surpassing the selloffs of the dot-com bubble and the 2008 financial crisis. Yet, in the past twelve months, dating to May 12, 2022, the S&P is in the green, up about 4%. That’s despite the banking crisis, high interest rates, persistent inflation that peaked last June, and near-record bearish sentiment.

Powered by technology giants like Apple and Microsoft, major indexes are holding steady, in line with Tom Lee’s view for 2023. In markets and investing, Lee knows that there’s always something to worry about, always a negative headline printed on a front page or flashed across a screen. One can always come up with reasons to sell stocks. As noted by bestselling author Morgan Housel, a recent subject of our Signal From Noise column, there’s always something. Housel points out that in September 1947, fear spread about a recession because World War II-related spending plunged.